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Economics Affairs Minister Vincent Karremans said Wednesday that
he was suspending an earlier order to take control of Nexperia
under a rarely invoked law.
The dispute between the two countries has threatened the supply
of chips critical for the global auto industry, with Nexperia’s
parts widely used by major carmakers in North America, Japan and
South Korea. Automakers warned in recent weeks that they were
running low on the chips, and Honda was forced to shut down a
factory in Mexico producing its popular HR-V crossover for North
American markets.
The Dutch government in late September took effective control of
Nexperia, citing national security concerns and “serious
governance shortcomings” at the company, which is headquartered
in the city of Nijmegen but owned by China’s Wingtech
Technology.
The Netherlands moved to seize control of Nexperia after the
U.S. put Wingtech on its “entity list” and subjected it to
export controls.
In response, Beijing blocked the export of Nexperia chips from
its factory in China from early October, a ban that it lifted in
recent days as part of the U.S.-China trade truce following U.S.
President Donald Trump’s meeting with Chinese leader Xi Jinping.
Karremans said he was suspending his order as a “show of
goodwill.” He said the decision came after “constructive
meetings” with Chinese authorities over the past few days.
“We are positive about the measures already taken by the Chinese
authorities to ensure the supply of chips to Europe and the rest
of the world,” he said in a statement.
“In light of these developments, The Netherlands has considered
it the right moment to take a constructive step by suspending
the order under the Goods Availability Act."
It wasn’t immediately clear from Karremans’ statement who will
regain control of operations.
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